Why do elevators always seem to be waiting on the right floor? Is it sheer coincidence? Maybe they have a mind of their own. The answer is in part the latter; the traffic mode of an elevator system is programmed according to the number and frequency of passengers arriving and departing in a building lobby. As a result, the elevator waits in the lobby during busier times in anticipation of traffic. This is known as fuzzy logic; a technique to embody human-like thinking into a control system. Significantly, fuzzy logic is also employed by AML screening and monitoring systems to optimise the number of alerts you receive on any given company or individual.
The recognition of aliases in AML screening and monitoring systems is just one example of the way they use fuzzy logic to optimise alerts. Figure 1 shows that a search for ‘Alexander Boris de Pfeffel Johnson’ on Themis Search brings up a result for Boris Johnson, the former Prime Minister, rather than exclusively bringing up results for individuals named Alexander Johnson. This is attributable to the system’s use of fuzzy logic, which enables it to recognise that Boris Johnson’s full name is in fact Alexander Boris de Pfeffel Johnson. In addition, the system’s use of fuzzy logic also means that name variations are factored into a search; figure 2 highlights how a search for ‘Arif Mohammad Khan’ brings up a corresponding result as well as results for a Arif Mohammed Khan and a Mohammad Arif Khan. This helps ensure that the user does not miss potential true positives due to a variation in the spelling of one’s name. According to one industry expert, the application of fuzzy logic here has proven transformative in terms of efficiency gains as one no longer needs to conduct a number of different searches to account for name variations.
Moreover, Themis Search’s use of fuzzy logic allows you to search for names in different languages. Figure 3 shows that a search for ‘רומן 'ארקדייביץ 'אברמוביץ’, which is Hebrew for ‘Roman Abramovich’, brings up a profile for Roman Abramovich in English. This is vital as it ensures that language does not act as a barrier when trying to identify a match. In addition, fuzzy logic is also applied when searching using a date of birth.
Figure 4 highlights how the system shows the results for two people with the same name despite having different dates of birth. This is because the system deliberately returns results which are plus/minus three years from the date the user has searched for in order to account for potential inaccuracies in the user’s data; this increases the scope of the search and increases the likelihood of identifying a positive result.
The use of fuzzy logic to optimise alerts is of great importance as AML professionals are increasingly reporting that they are being swamped with an excessive number of alerts; two thirds of respondents to Themis’ recent Financial Crime Technology Survey described this as their biggest pain point with their current AML screening and monitoring system. This is also problematic for organisations as it means that their compliance analysts are spending most of their time reviewing alerts. As a result, organisations risk losing sight of the purpose of screening - to detect suspicious activity related to financial crime - as it becomes more of an exercise in process management. This is also something that the Financial Conduct Authority (FCA) has drawn attention to; they note that an excessive number of alerts on screening and monitoring systems is an example of poor practice as it leads to ‘large numbers of resource intensive false positives’. While one may suggest narrowing the scope of the search to address this issue, this will likely lead to false negatives, with the user mistakenly believing that there are no positive results. This too is regarded as an example of poor practice, with the FCA discouraging the ‘discounting [of] actual target matches incorrectly as false positives due to insufficient investigation’. This dilemma poses a pertinent question: where does this leave the user?
The solution is for users of AML screening and monitoring systems to use a tool which empowers them with control over the fuzziness setting and, by extension, their alerts. Themis Search, our end-to-end financial crime screening platform that allows you to investigate any company or individual in the world for links to financial crime, does exactly this. In addition to factoring in different bits of information like aliases and languages, it also allows the user to adjust date of birth sensitivity, meaning that the user can search for anything between exact matches to those 5 years within the date of birth. The user can also tune the fuzzy logic searching thresholds across the system. Set it to 100% and the system will only return matches if it believes there is an exact match with your data or set it down to 65% to maximise the range of potential matches you will be able to find. These features were heralded by an industry expert during a research interview for this article, who noted that they can have a transformative effect by increasing both job satisfaction and productivity while also helping to reduce operating costs. Significantly, we are continuing to build upon and develop our fuzzy logic as we look to provide users with the ability to control even more variables when refining a search in the near future.
If you are interested in booking a demo of our platform, please do so here.
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We’ve handpicked a selection of standout books our team discovered over the summer—perfect picks to kick off the “back-to-school" season. These compelling reads offer deep insight into financial crimes, the systemic vulnerabilities they exploit, and their far-reaching consequences.
AI is fast becoming a high-ROI tool in financial crime and compliance. From cutting costs and boosting efficiency to enhancing resilience, strategic AI investments are helping CFOs do more with less - transforming risk management and unlocking new value across the financial sector.
The UK’s latest National Risk Assessment (NRA) reveals how money laundering and terrorist financing are evolving—and how the UK is fighting back. A vital guide for AML policy, it arms businesses with intelligence to spot risks and stay protected.
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Many clients have heard of the OFAC 50 Percent Rule but aren’t sure how it affects them. It’s far-reaching, with hidden sanctions risks. This post explains the rule, why it demands deeper due diligence, and steps to identify and mitigate those risks.
In June, the EU removed the UAE from its list of high-risk jurisdictions from an AML perspective, signaling growing international confidence in the country’s financial crime oversight.
New updates to the Land Conversion and Financial Crime Risk Assessment link environmental harm to financial crime. Cattle rustling in Nigeria and Cameroon is now red-rated, with added risks on carbon credit fraud, child labour, mining corruption, and gold smuggling.
An overview of modern slavery, distinguishing between human trafficking, smuggling, and forced labor. It highlights the global prevalence of exploitation and the importance of understanding these definitions to combat such crimes.
Dubai’s $160B foreign-owned real estate market faces money laundering risks. The UAE now requires reporting of property deals over AED 55K via REAR. Criminals like Daniel Kinahan have exploited property to hide illicit funds, underscoring the need for strict compliance.
Examines how digital platforms and cryptocurrencies facilitate human trafficking, allowing traffickers to operate anonymously and at scale, posing challenges for law enforcement.
Investigates how sanctions intersect with trade-based financial crimes in Hong Kong, highlighting the complexities businesses face in navigating regulatory compliance.
Financial crimes cause more than economic harm—they hit mental health too. UK data shows 60% of fraud victims face distress; Ghana research links corruption to anxiety and depression. This blog calls for tackling both psychological and financial impacts.
Environmental crime worsens gender inequality, driving violence, trafficking, and hardship for women—especially in regions like the DRC and Peru. Women defenders face abuse, and climate change deepens risks like water scarcity, child marriage, and health threats. Tackling these crimes is key to protecting women’s rights and safety.
AI is transforming financial crime prevention—improving detection, reducing costs, and streamlining compliance. Generative AI and graph networks boost due diligence, while ethical, human-guided use counters criminal misuse. Themis champions tech-human collaboration.
Explores the application of fuzzy logic in Anti-Money Laundering (AML) systems, emphasising its role in improving name-matching accuracy and reducing false positives, thereby enhancing compliance efficiency.
This book focusses on the challenges faced by law enforcement in North West USA and in British Columbia to combat illegal logging, as well as those of the timber-industry communities established since the late 19th century to maintain meaningful and financially viable lives.
The FATF has highlighted the UAE’s progress in fighting financial crime. Its third enhanced follow-up report upgraded three recommendation ratings for the country, marking a step forward in meeting international standards.
Lebanon’s economic collapse, fuelled by debt, corruption, and instability, has led to hyperinflation and greater financial crime risk. In Oct 2024, the FATF grey-listed Lebanon. The country pledges a two-year reform plan to boost transparency and restore investor confidence.
The UK treats profits from legal overseas cannabis businesses as criminal property under the Proceeds of Crime Act. Few cases qualify for exceptions, creating a legal grey area—so anyone handling such funds should proceed cautiously and seek legal advice.
The UK’s 2023–2026 Economic Crime Plan commits £400M to tackle money laundering, kleptocracy, and fraud, with reforms to Companies House, crypto, and sanctions. Progress is clear, but critics urge more urgency and funding. Success depends on public-private collaboration.
Suspicious Activity Reports (SARs) are key to fighting financial crime, with 42% of fraud found via tip-offs. Rising UK SARs and account freezes show their impact. Themis urges strong reporting systems and whistleblower protections to foster transparency.
Corrupt elites still exploit the UK property market via offshore structures and relatives to hide assets. Over 18,000 firms remain non-compliant. With cases of children holding luxury homes, Themis calls for tougher enforcement as new UK and FATF guidance target transparency gaps.
Corruption undermines sustainable development, financial integrity, and DEI. A Themis–Denominator study links lower corruption to higher DEI scores. Marginalised groups, especially women, suffer most. Promoting diversity and transparency is key to fairer societies.
Hindenburg Research accuses India’s Adani Group of fraud, alleging stock manipulation, shell firms, and nepotism—halving Gautam Adani’s net worth and shaking investor confidence. The case highlights how financial crime can roil markets and the need for strong due diligence.
Supply chain failures have linked firms like Inditex and Skechers to forced labour and reputational risk. The EU’s CSDDD will require large companies to address human rights and environmental harms. Themis offers tools to assess suppliers and fight modern slavery.
On World Wildlife Day and CITES’ 50th year, Themis reflects on tackling illegal wildlife trade—the 4th largest financial crime. Laws, AI, forensics, and global cooperation drive change, but shifting demand, like ivory to hippo teeth, shows challenges remain.
Puppy smuggling in the UK has surged post-pandemic, with organised crime exploiting demand and loopholes to import sick or underage dogs. Despite new laws, enforcement gaps remain. Themis urges buyer vigilance—tools like Themis Search can help spot breeder risks
Romance scams rose 30% in 2022, with victims losing £8,234 on average—especially men and those aged 65–74. Scammers use fake profiles and emotional manipulation. Themis urges due diligence in dating; tools like Themis Search can flag risks and help platforms protect users.
Crypto plays roles in both social good and crime—over $50M has aided Ukraine, but bad actors use it to evade sanctions and launder funds, notably via the UAE and Central African Republic. Themis calls for stronger due diligence and compliance to curb misuse.
The Russian invasion of Ukraine has heightened trafficking risks for women and children. Over 2.5M flee, with traffickers exploiting chaos, especially in Moldova, Poland, and Italy. The OSCE urges swift action to warn refugees of false offers and protect them.
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